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External auditors issue clean opinion as Pennridge shows improved net position but cash draws for capital continue
Summary
Barb and Thornton presented an unmodified audit opinion for 2024‑25, noting clean single‑audit results; cash and investments declined due to capital spending, but actuarial pension/OPEB adjustments improved net position to $2.2M.
External auditors from Barb and Thornton (lead auditor Tim Stoyer/St. Sar) told the finance committee the 2024–25 financial statements received unmodified (clean) opinions and that federal single‑audit requirements were satisfied. The auditors reported no control deficiencies for payroll controls tested and noted full cooperation from management.
Key figures highlighted: cash and cash equivalents fell from about $18.1M to $16M and investments decreased from roughly $37.1M to $34.3M, primarily because of capital project expenditures and scheduled debt service. Construction‑in‑progress increased and the district placed about $21.7M of completed capital projects into service during the year. Accrued salaries (summer pay) rose slightly year‑over‑year.
Auditors credited actuarial valuation changes for improving the district's reported net position from a deficit of $4.8M to a positive $2.2M, largely because of a $12.8M reduction in the district's net pension liability estimate and about $6M reduction related to OPEB actuarial factors. The auditors cautioned actuarial valuations and market conditions can reverse such improvements in future cycles.
Board members asked about timing variances in receivables and payables and the auditors explained those movements were often timing issues tied to grant receipts and construction payables. The auditors also previewed upcoming GASB accounting changes affecting capital-asset disclosures that will appear in next year's audit.
